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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
78
Note 11—Income Taxes (continued)
The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities
were as follows:
December 31,
2012 2011
(In thousands)
Deferred tax assets:
Net operating loss carryforwards $13,655 $120
Stock-based compensation 7,057 4,236
Reserve for overdrawn accounts 6,130 5,726
Accrued liabilities 3,191 717
Purchase accounting adjustments 494 1,276
Other 778 697
Gross deferred tax assets 31,305 12,772
Valuation allowance (1,262) —
Total deferred tax assets, net of valuation allowance 30,043 12,772
Deferred tax liabilities:
Internal-use software costs 9,986 3,669
Property and equipment, net 6,013 3,022
Deferred expenses 4,013 3,987
Intangible assets 1,386 103
Deferred revenue 1,063 78
Other 475 —
Total deferred tax liabilities 22,936 10,859
Net deferred tax assets $7,107 $1,913
Total net deferred tax assets and liabilities are included in our consolidated balance sheets as follows:
December 31,
2012 2011
(In thousands)
Current net deferred tax assets $2,478 $6,664
Noncurrent net deferred tax assets 4,629 —
Noncurrent deferred tax liabilities —4,751
Net deferred tax assets $7,107 $1,913
We establish a valuation allowance when we consider it more likely-than-not that some portion or all of the deferred
tax assets will not be realized. The valuation allowance as of December 31, 2012 is associated with net operating loss
carryforwards we acquired in our acquisition of Loopt. We established a valuation allowance for the carryforwards at
acquisition because we believe it is more-likely-than-not that a portion of these carryforwards will not be realized. Future
changes in the valuation allowance associated with these deferred tax assets will be recognized as a reduction or
increase to income tax expense. As of December 31, 2011, we did not establish a valuation allowance on any of our
deferred tax assets as we believed it was more-likely-than-not that we would realize the benefits of our deferred tax
assets.